The Case Study Of The Internal Environmental Factors Of China Securities

Security companies are one of the many modern enterprise organization forms. Most ofthem are comprehensive management institutions, which consist of three main business:underwriting, operation and proprietary business. In China, during the transition of theplanned economy to market economy, the security companies also bore the special mission tohelp the enterprises to restructure. In early2012, the Chinese version of Sarbanes-Oxley,TheBasic Standard of Internal Control for SMEs’ started its implementation in the main board oflisted companies of the Shanghai Stock Exchange and Shenzhen Stock Exchange. Thisstandard defined the connotation of internal control scientifically and positioned its goalaccurately, which marked that the listed companies’ internal control began to turn from thepurely internal accounting control to risk control. Internal control consists of five basicelements which are internal to the environment, risk assessment, control activities,information and communication, supervision and inspection. In the organic system, the basisand premise of the elements of internal control are internal environment factors, and it alsoestablishes the basic framework of internal control for the enterprises and guidelines,establishes the fundamental key of enterprise internal control and influences the staffawareness on internal control. Internal environment of the various elements form a whole, ifone of the factors of fails, it may lead to the failure of internal environment system, and affectthe whole internal control mechanisms function.Starting with the Everbright Securities internal control failure events, this thesis is toenrich the related research and application of the internal control in the security companiesfrom the perspective of system theory and the theory of internal control environment. Thisthesis uses the methods of literature investigation, normal analysis, qualitative analysis, caseanalysis and other methods, and emphatically from the Angle of system theory, this thesis setsforth the significance of internal environment factors to the the Chinese securities firms’operation, and puts forward some suggestions for how to establish internal environment systems to withstand the current economic climate and the external and internal risks for theenterprises. Though this thesis only takes Everbright Securities as an example,the research hasa general reference meaning for the analysis of the internal environment problems, theconclusions, and also plays as a good guidance to the reality. For the construction of internalcontrol environment system,which is the first defense to our country securities companies’internal control, the thesis not only has theoretical significances, but also practicalsignificance.This thesis is mainly divided into five parts and analyzes the problems existing in theinternal environment of Everbright Securities combining with related theory after anintroduction of the overall frame. At the same time, with the actual economic developmentstage and characteristics, the thesis puts forward the index system of internal environmentalelements that are in accordance with the time feature, and provides a framework for somereforms of the internal environment factors which are widespread in security companies.